The headline inflation gauge for Australia. Simply put, inflation reflects a decline in the purchasing power of the Aussie Dollar, where each Dollar buys fewer goods and services. In terms of measuring inflation, CPI is the most obvious way to quantify changes in purchasing power. The report tracks changes in the price of a basket of goods and services that is typically bought by a metropolitan Australian households. An increase in the index indicates that it takes more Australian Dollars to purchase this same set of basic consumer items.

Unlike most other countries, Australia publishes CPI quarterly instead of monthly, increasing the market impact of the report upon release. The headline number is released as the percentage change from the previous quarter or year.

The Reserve Bank of New Zealand (RBNZ) releases this statement in connection to its recent decision on short-term interest rates. Interest rates are a primary determinant of a currency's value and these statements are used by traders to determine future monetary policy decisions.